1. 1. Crude Oil Transportation Hudson River Issues Update Sean Dixon Staff Attorney May, 2015
2. 2. ABOUT RIVERKEEPER Mission Protect the environmental, recreational and commercial integrity of the Hudson River and its tributaries. Safeguard the drinking water of nine million New York City and Hudson Valley residents. Enforce the Clean Water Act.
3. 3. CRUDE OIL: AN UNREFINED PROBLEM Tar Sands/Heavy Crude Photo: Ben Garvin Shale Oil
4. 4. STATE OF ENERGY Changes Higher Domestic Production Transportation Bottlenecks Aging Infrastructure Effects Train Derailments Barge Collisions Oil Spills, Explosions, Lives Lost
5. 5. EIA
6. 6. New York Times
7. 7. CSX
8. 8. New York Times
9. 9. New York Times
10. 10. New York State, 2014
11. 11. New York State, 2014
12. 12. 2-4x Daily 3M Gallons Weekly 8.4M Gallons Daily 4M Gallons
13. 13. 10 Million Gallons Daily
14. 14. 6.3 Billion Gallons Yearly
15. 15. Lac-Megantic, Quebec, July 2013. Train Derailment and Explosion of Bakken Crude Oil; 47 people killed, downtown buildings leveled. Photo: Sret du Qubec
16. 16. Philadelphia, PennsylvaniaLynchburg, Virginia Aliceville, Alabama Casselton, North Dakota
17. 17. Galena, IL (March) Mt. Carbon, WV (February) Timmins, Ontario (February) Gogama, Ontario (March)
18. 18. CRUDE BY RAIL: CONCERNS TransitLoading Labeling Classification Stabilization Tank Car Design (common carrier) Small Spills Cumulative Issues (production, gathering) Off-Loading
19. 19. CRUDE BY RAIL: CONCERNS Transit Speed Limits Routes (habitat, cities, water) Derailments Notification Response Assets Response Access Infrastructure Loading Labeling Classification Stabilization Tank Car Design (common carrier) Small Spills Cumulative Issues (production, gathering) Off-Loading
20. 20. CRUDE BY RAIL: CONCERNS Transit Speed Limits Routes (habitat, cities, water) Derailments Notification Response Assets Response Access Infrastructure Loading Labeling Classification Stabilization Tank Car Design (common carrier) Small Spills Cumulative Issues (production, gathering) Off-Loading Air Quality Oil Spills Throughput Fees Cumulative Issues (refineries, ports) Security Risks Community Access (idle trains)
21. 21. CRUDE BY RAIL FEDERAL ACTION May 2015 PHMSA Regulations Tank Car Design & Phase-Outs Routing/Notification Speed Limits Other Rulemakings & Orders Securement Response Planning Crew Size Thermal Insulation Emergency Order
22. 22. TAKE ACTION! What Riverkeeper is Doing: Petition for Review (PHMSA Regulations) Administrative Appeals (Notification) Federal Rule Petitions Nationwide Coalition-Building What You Can Do: Call Your Elected Officials Call Your Local First Responders Develop Your Own Emergency Plan
23. 23. Thanks! SDixon@Riverkeeper.org www.riverkeeper.org/crude
24. 24. Update on Crude Oil Transport in the Hudson Valley Kate Hudson Director, Cross Watershed Initiatives May, 2015
25. 25. Crude Oil on the move down the Hudson River Valley 1. What are the risks? 2. Are we ready? 3. Proposed crude oil pipeline a new risk 4. What we are advocating for 5. State budget and legislative actions 6. What you have done! And what can still be done!
26. 26. Between 2011 and 2012, NYS DEC permitted transfer of 2.8 billion gallons of crude in the Port of Albany and declared further expansion of Global Albany terminal would have no significant environmental impact. 1. After receiving 19,000 comments on its Negative Declaration, on May 21, 2015, DEC issued a Notice of Intent to Rescind that Determination to Global. 2. DECs notice is based on project changes, new information and changes in circumstances not previously considered which have the potential to have significant adverse impacts on the environment [that] must be fully analyzed. Past and Present NYS Actions re Crude Oil Permitting in the Port of Albany
27. 27. What Happens Next? 1. Global has 10 days to respond to the Notice with its objections. 2. SEQRA law requires that, after hearing from Global, DECs determination is the same, it must prepare, file and publish a positive declaration and require the preparation of a environmental impact statement for proposed Global Albany terminal expansion. 3. We must continue to advocate for a full environmental impact review that evaluates the direct, indirect and cumulative impacts of the entire project. 4. If and when DEC issues a positive declaration we must demand and participate in the public scoping process that will determine the contents and scope of the DEIS that Global is required to prepare.
28. 28. The first tanker laden with Bakken Crude carrying as much oil as the Exxon Valdez - runs aground 6 miles south of Albany in Dec. 2012. Derailments in West Nyack, Cheektowaga, Town of Ulster, Selkirk and Albany (Kenwood), all five since December 2013. Dozens of rail and tank car safety violations identified in joint state-federal inspection blitzes in 2014 -2015 in Albany and Buffalo. Warning Signs on the NYS Virtual Pipeline Gash in the hull of the Stena Primorsk after grounding.
29. 29. Crumbling Infrastructure Many train bridges across the region are deteriorating, including two in Cornwall where the concrete foundation has eroded, vertical cracks have emerged, rebar has become exposed, and bolts have become loose or have fallen off altogether. Senator Charles Schumer
30. 30. Bridge Inspection 2013 Comptroller Audit 2651 bridges with no last inspection date 3000 bridges w/ no inventory or up-to-date reviewed management plans
31. 31. We arent tasked to inspect bridges only to audit the railroads bridge inspection plans. Federal Railroad Acting Administrator Sarah Feinberg CSX, which owns the bridges, is left mostly to police itself. CSX filed a one-sentence letter to the state and feds stating that all their bridges have been inspected and determined to be safe. Jim Hoffer, Emmy-Winning ABC 7 Reporter Watch: http://7online.com/447890/
32. 32. Communities At Risk Ulster County Saugerties, Highland Kingston, Port Ewen Esopus, Marlborough Dutchess County Rhinebeck, Hyde Park Poughkeepsie, Fishkill Tivoli, Beacon Crude oil trains hug the western shoreline for many miles, including near drinking water intakes for the City of Poughkeepsie and the Town of Lloyd.
33. 33. Drinking Water at Risk 100,000+ people rely on Hudson River drinking water Poughkeepsie 75,000 (city, town and other neighboring towns) Hyde Park 12,288 (including Harbourd Hills and Staatsburg water districts) Rhinebeck 5,300 Highland 5,000 Port Ewen 4,500 Major industries also at risk IBM, power plants, etc.
34. 34. Are we ready? Hudson River Spill Response Success of spill response is affected by conditions of the water and type of oil spilled: Bakken crude floats, tar sands crude sinks. The Hudson River is turbid and subject to strong tides, currents and winter ice, making recovery very difficult if not impossible. James Riverkeeper
35. 35. Response is NOT Oil Recovery A spill of Bakken crude oil in water. A successful spill response in the Hudson might recover 20-25% of the oil. A spill of tar sands crude oil in water. A successful spill response might recover just 5% of the oil.
36. 36. Local Emergency Response New Challenges No Funding Major Disasters The large-scale shipments of crude oil by rail simply didn't exist 10 years ago, and our safety regulations need to catch up with this new reality. Most communities across the nation are not prepared to handle oil train derailments such as the one in Lac Megantic. - National Transportation Safety Board Chairman Deborah Hersman Railroad companies have a responsibility to respond to accidents. Federal law says they must have a basic emergency response plan, but that plan is up to the railroad. If a ship or barge hauls oil, the company needs a detailed spill response that meets federal standards, but there are no standards for the railroad's emergency plans.
37. 37. Rail Towns Preparing for What if When a rail incident happens, local responders are first to arrive How many local fire departments and how many are situated along railroad tracks? Who would respond? What is CSX spill response plan for a rail car incident involving Bakken crude? Do the first responders have the manpower, the equipment and training to monitor and respond to toxic spills and accidents involving Bakken or Tar Sands crude? Is there an updated spill response plan and how is it coordinated across local first responder agencies? How large is the area to be evacuated? Where should people go? Should some residents close to the derailment be told to stay in their homes because it's too dangerous to leave? How soon will CSX respond to an incident and when will a hazmat team arrive ? Are local firefighters encouraged but not required to take training for crude oil spill response?
38. 38. Proposed Pilgrim Pipeline: An Added Risk
39. 39. Spill Risks of Pipelines Pipeline spills are inevitable (Pick your Poison for Crude - Pipeline, Rail, Truck or Boat Forbes, April 2014). Pipeline spills release much larger amounts of oil than spills from any other mode of transport. From 2004 to 2012, pipelines spilled three times the oil that oil trains did over the same period (PHMSA). The 10 year average (2004-2013) is 631 pipeline incidents per year with 97,263 barrels (over 4 million gallons) per year spilled resulting in $494 million per year in property damage (PHMSA).
40. 40. Construction Impacts Construction across key waterbodies including important tributaries to the Hudson River (Esopus, Rondout, Sawkill and Plattekill Creeks and the Wallkill River) Disturbance of federal and potentially state wetlands Stormwater impacts due to vegetation removal Potential impairment of sensitive aquifers on which residents depend for drinking water Crossing of Delaware and Catskill aqueducts that supply drinking water to more than 9 million New Yorkers Disturbance of critical wildlife habitat Negative impacts to property values
41. 41. Pilgrim Pipeline Siting and Permitting Process No federal agency with overarching authority to oversee siting process for oil pipelines. No role for the public until state and federal permit applications are filed by the applicant. Access to Thruway ROW requires NY Thruway and DOT approval. Permitting restrictions and difficult approval process. Other Permits Required DEC wetlands, 401 Certification Army Corps 404 dredging, stream crossing, wetland disturbance CZMA Coastal Consistency (Army Corps, DOS) Need for full EIS under NEPA/SEQRA in all permitting proceedings and ESA consultation for Federal permits.
42. 42. Riverkeeper Recommendations for State Action on Spill Response and Preparedness Raise Spill Fund Cap to present value of $25 million in 1977 when the spill fund was created ($97 million). Spill Fund should be authorized to recover money for spill remediation up to federal maximum liability levels. All persons responsible for transport must maintain evidence of financial capability to pay for worst-case scenario spill. New preparedness funding should be in separate account so it does not drain the response and remediation fund. Responsibility for the State Spill fund should not be moved from the fiduciary control of the State Comptroller to DEC.
43. 43. 2015 Executive Budget: Proposals and actions taken Raise spill fund cap from $25 million (set when the fund was created in the 1970s) to $40 million. Make monies from the state spill response fund available to local first responders with no cap. Move responsibility for maintaining the State Spill Response Fund from the Comptrollers Office to DEC. Actions Taken: Legislature adopts a 2015 budget that increases the Spill Fund Cap to $40 million, creates a separate fund with annual allocations to support local spill preparedness, and increases fees on some crude rail transport that is handled in NYS.
44. 44. NYS Legislative Action in 2015 is it enough? The spill fund cap is still too low. Fees are still not being charged on oil that is just passing through. Legislation has been introduced to require financial assurance from crude oil handlers. Legislation is being considered that would require information-sharing on crude oil transport within NYS.
45. 45. NYS Assembly Bill No. A7625 TITLE OF BILL: An act to amend the navigation law, in relation to financial responsibility for the liability of a major facility or vessel PURPOSE OF BILL: To require the owner or operator of a major facility or a vessel to establish and maintain with the department evidence of financial responsibility sufficient to meet the amount of liability. Bill search at http://assembly.state.ny.us
46. 46. Riverkeeper Recommendations for Update of Federal spill response plans Update worst-case scenario spill to include heavy crude oil that sinks, affecting drinking water supplies and deepwater habitats. Regional Plan and Individual Vessel Plans must address unique risks of Bakken and tar sands/sinking oil shipping. Develop spill response plan based on most recent science concerning the distribution and sensitivity of natural resources. Set benchmarks for oil spill recovery, not just spill response. Plan should set a minimum recovery standard just showing up isnt good enough for the Hudson .
47. 47. Riverkeeper Recommendations for Update of Federal spill response plans Must require deployment of response equipment upriver, not just in NY Harbor. Pre-deploy booms near sensitive ecological resources. Prohibit use of dispersants in Hudson Estuary. Require more realistic spill drills.
48. 48. What you have done! New York State issues notice to rescind Globals heavy crude heating no impact determination What you can do Press DEC to: 1. Rescind negative declaration previously issued by DEC and require full environmental review for proposed Global Albany terminal expansion. 2. Require the preparation of a full environmental impact review that evaluates the direct, indirect and cumulative impacts of the entire project, rather than separate reviews of parts of the action. 3. Revoke permits already granted to Global to expand its crude oil terminal operations without full environmental review mandated by SEQRA.
49. 49. What you have done! Local Government Resolutions Albany Putnam County Cold Spring Rockland Orange Orange County Assoc. Philipstown Ulster Newburgh Hyde Park Cornwall
50. 50. What You Can Continue to Do: Take Action On Crude Oil Transport Call for New York State Action Request full environmental review of proposed Global Partners oil terminal in Albany, specifying risks of heavy crude to the Hudson River and Ulster Countys shoreline. Urge DEC to re-open existing permits that allowed for Port of Albany crude oil throughput to increase from zero to 2.8 billion in two years. Request inspection blitz on Hudson Valley rail lines. Request information from NYS DOT and/or Comptroller about railroad bridges in Hudson Valley Counties, given Comptrollers 2013 Report findings of problems with inspection program.
51. 51. Actions We Can Take on Pilgrim Pipeline Write to the NYS Thruway Authority and NY Department of Transportation and urge them to deny Pilgrim the ability to use the Thruway right of way for their pipeline. Write to the NYS Department of Environmental Conservation and the Army Corps of Engineers and urge them to require a full environmental review of Pilgrims proposal. Work in your community to introduce and pass County and local resolutions opposing Pilgrim Pipeline. Urge your state and federal elected representatives to join you in pressing regulators not to authorize the Pipeline.
52. 52. Help Spread the Word! Take action at riverkeeper.org/crude to: Write to your state and federal elected representatives asking them to join you in pressuring regulators to take immediate action. Write letters to the editor expressing your concerns about the risks and lack of adequate government response. Use social media to spread the word about the crude oil transport threat to your community, the Hudson River and the Hudson Valley using the hashtags #NotOnMyWatch or #NoCrudeOnHudson.
53. 53. Thank You! www.riverkeeper.org/crude atlantic2.sierraclub.org